How to budget for vehicle financing

How to budget for vehicle financing

By | 2014-07-29T08:25:35+00:00 4 August 2014|Blog, Vehicle finance|

A car is often the second most expensive purchase to dip its fingers into your pocket after a home. The vehicle financing you choose, according to your budget, can make all the difference on your future financial security.

In this day and age, there is hardly anyone making ends meet without the weight of debt on their hands. Today’s lifestyle dictates high-end temptations. Every big ticket item requires big ticket earning or the spreading out of instalments. If you’re thinking of buying a used car without falling into the crippling world of bankruptcy, a carefully planned budget is essential to keeping you out of trouble. 

Tips for staying on budget and avoiding bankruptcy

  • Be honest with what you can afford. A good rule of thumb is to work out no more than 20% of your monthly household income for car repayments.
  • Don’t forget to factor in the current interest rate. Other influences on your monthly repayments include: your credit, your income, type of vehicle and the specific terms of your financing contract.
  • Take into account your other debt when determining your budget too.
  • Consider your used car maintenance expenses. You’ll be using the car to get from A to B, so it’s a good idea to factor in how much that will also cost you when it comes to petrol, insurance and other maintenance costs.
  • Shop within your means. Narrow down your buying choices of vehicle to within your budget.
  • Read the fine print of the vehicle financing contract.
  • Learn the terms used in your contract too. Ask questions and find out everything you don’t fully understand before making a commitment.

When it comes to budgeting for a pre-owned car, it simply comes down to accurately working out the numbers and confidently acquiring all the information you need to know about what you’re committing to. With Earn-a-car, you can be rest assured that your vehicle finance choice offers the best value for money. Contact us to get back on the road and back on track.

Earn-a-car is your ticket to easily owning a used car without the frustration of a dead-end. With instant credit approval, 1 hour drive away and great vehicle finance deals, you have the freedom to get back on the road and back on track with the lifestyle of your dreams. With Earn-a-car you can own the car of your choice in as little as 4 years.

All you have to do is select your dream car from our wide range of fantastic deals and then start earning. For every monthly payment, you earn R300 cash back. You can use the accumulated cash to buy the car at the end of your contract period or simply spend as you wish. It’s that simple. In as little as three and half to four years, you could be the proud owner of your chosen vehicle! If you know someone struggling to receive vehicle finance, you can even earn yourself a R1 000 bonus by referring them to us. Contact us today and start earning.